Posted by Michael (KCMO) on February 02, 2004 at 09:05:10:
Ryan,
I haven’t learned the particulars yet of how the “Security Agreement” is worded or of how it differs from the “Promissory Note”. My attorney is supposed to draw up the document for me this week as well as review all my existing agreements. My Promissory Note has a paragraph stating:
“This Note is secured by a first lien on a _________(year), ________________(size) Mobile Home, ID # ______________________________________________________ located at _________________________________________________________________. Title to remain in Note Holders possession until satisfactory payment of this Note is made, at which time, title will be delivered to Note Maker(s) free of liens. Note Maker(s) to pay all costs of transferring title.”
I first learned of the need for a “Security Agreement” when trying to find out the process of eviction/repossesion for one of my buyers. As I started calling attorneys one of them asked if I had a Security Agreement. I told them I had a Sales Agreement and a Promissory Note. They said I needed a separate Security Agreement granting me a security interest in the property. When I finally was able to sit down and talk w/ an attorney I showed him everything I had and asked them about it. He said that while I could repo and evict w/ what I had (including the paragraph above), that it would be a little harder to do and I really did need a separate Security Agreement. Since I had a couple of different sources tell me the same thing I’m trusting that they weren’t just needing more help making the payment on their Mercedes that month. LOL
At any rate . . . . I should know more later this week after I’ve met w/ him and gone over everything.
Hope this helps. If you happen to find out anything about it yourself, I’m always grateful for good advice. If anyone else has any other information or advice, I’m all ears.
Regards,
Michael (KCMO)
P.S.
Ryan,
Are you familiar w/ the eviction/repo process in MO? Would you mind explaining it and giving me a general run-down?
Posted by Mark -Or on January 29, 2004 at 20:57:27:
to ask in one post, so I’ll try one at a time.
When I sell a home, what documents do I need and can I get away with standardized, simplified docs such as the ones in DOW? I guess thats two questions, but I’m always trying to get more for my money.
Posted by Steve-WA on January 29, 2004 at 22:51:30:
To sell, you need to talk to your county treasurer/assessor, tell them what you weant to do, and ask them what they want. then do that.
talk to your local office of the state titling entity (DOL, DMV, whqtever) and do the same thing.
You will need a sales agreement - like in DOW - and a note - like in DOW - and whatever they tell you.
check the archives for Phil Pelletier - he is in the Portland area, and would probably be able to better answer your questions. Saint Phil would be a great mentor for any Beaver or Duck.
Posted by Michael (KCMO) on February 01, 2004 at 07:39:32:
Just a note for anyone else interested in this topic or researching it at a later date in the archives . . .
There is another document I’ve learned is needed. A “Security Agreement”. This is separate from both the “Sales Agreement” and the “Prommissory Note” - even when the Prommissory note contains a line “granting a security interest in XYZ home at 123 address”. This applies in MO which is the only state I have any experience in. So anyone starting out in another state I would suggest talking w/ an attorney familiar w/ the particulars of the law in your own state.
Posted by Mark-Or on January 30, 2004 at 19:34:12:
Steve- Thanks for the good info. I did search and read a bunch of Phil posts. I emailed him and he responded right away with alot of great advice. He even gave me his phone#. It’s great that you people are so willing to help out us Newbies. Thx again, Mark
Posted by Ryan_MO on February 01, 2004 at 22:04:26:
Hey tell me mroe baout this security agreement needed in MO. Ive never heard about it. A partner of mine had a lawyer draw up a purchase agreement and promissory note for her to use. Cost her big bucks, but the lawyer never made up a security agreement for her. Let me know what this is and why it is needed. Thanks.
